Sensex, Nifty Seen Lower As Fed Signals Two More Rate Hikes

Indian shares may open lower on Thursday after the U.S. Federal Reserve forecast two additional rate hikes this year and reports emerged that the Trump administration is preparing to proceed with tariffs on Chinese goods.

Meanwhile, India's current account deficit for fiscal 2017-18 has widened on the back of a higher trade deficit, RBI data showed.

Fitch Ratings has raised India's GDP growth forecast for 2018-19 to 7.4 percent from 7.3 percent, but cautioned that higher financing costs stemming from monetary tightening and rising oil prices may limit the upside to growth.

Benchmark indexes Sensex and the Nifty rose for a third straight session on Wednesday, although markets ended off their day's highs ahead of central bank meetings. The rupee closed at a two-week low against the dollar.

Asian stock markets are broadly lower this morning and the dollar rally lost steam ahead of ECB meeting while oil prices eased slightly, hit by data showing another rise in U.S. production.

Overnight, U.S. stocks fell slightly as trade war fears resurfaced and the Fed signaled more aggressive pace of rate hikes after lifting short-term interest rate a quarter percentage point, citing a strengthening economy.